Kvaerner Masa-Yards Inc potentially to build Luxury Residence Ship to be operated by Four Seasons Hotels and Resorts

HELSINKI, Finland, 15 June, 2004 – Kvaerner Masa-Yards Inc. (KMY), has signed a conditional contract with FS Ocean Club Ltd., managed by Ocean Development Group, to design, construct and deliver an approximately 42,500 Gross Ton luxury residential ship to be branded, managed and operated by Four Seasons Hotels and Resorts. The ship, to be named the M/S Four Seasons, will be approximately 200 meters in length and will feature approximately 100 spacious residences varying from 125 square meters to 320 square meters.

“KMY is excited to have the opportunity to work with both Four Seasons and Ocean Development Group on this new project,” said Mr. Yrjö Julin, President and CEO, KMY. “With our combined experience, we are sure that M/S Four Seasons will promote the new residential lifestyle that can be offered at sea.”

The value of the contract is approximately €276 million and will, when confirmed correspond to about two thousand man-years employment at KMY and its suppliers and subcontractors. KMY has built more than 25% of the world’s modern passenger ship fleet, and enjoys an unprecedented on-time delivery record. Construction of the M/S Four Seasons, which is anticipated to take 24 months to complete, will commence when sales targets for the residences have been reached, which is expected to occur before July 2005.

The agreement includes an option to contract a similar vessel to be exercised within year 2005 as soon as the sales targets for residences have been reached for the second vessel.

“The signing of this conditional contract with KMY and our agreement with Four Seasons are significant milestones in our plan to create a unique residential community at sea,” said Chairman and CEO of Ocean Development Group, Mr. Kristian Stensby. “The development in recent years of branded luxury residential resort communities has shown there is great potential demand for the unique lifestyle experience we will offer.”

“We are excited to expand our residential portfolio with this new and visionary lifestyle product,” added Kathleen Taylor, President, worldwide business operations, Four Seasons Hotels and Resorts. “The M/S Four Seasons will offer our guests the opportunity to experience the Four Seasons lifestyle in locations where we do not currently have a presence, and will become a showcase for the highly personalised service for which Four Seasons is renowned.”